The purpose of this brochure, which was produced as a service to the academic community, is to provide a brief outline of what can and cannot be done legally with software, and to clarify the implications and restrictions of the U.S. Copyright Law. Relevant facts concerning copying software precede the EDUCOM statement of principle on intellectual property and the legal and ethical use of software. The different restrictions and limitations of copyright are then described for each of the four categories of software: commercial--the majority of software purchased from publishers and commercial computer stores; shareware--provides a license to use the software (restrictions vary from program to program); freeware--conditions, defined by the holder of the copyright, are in direct opposition to normal copyright restrictions; and public domain--original copyright holder relinquishes all rights to the software. Common questions are answered and site-licensing and bulk-purchase software are suggested as legal alternatives to purchasing software. (ALF)